Private capital is a driver for the real economy

The market emergency and volatility caused by the Covid-19 pandemic have intensified the dialogue between banks and their clients, in particular entrepreneurs, who in times of uncertainty such as these feel the need even more to call on sector professionals — not only to safeguard their financial wealth but also to manage all their assets, from managing their companies to generational transitions and opening up the ownership to new sources of capital.

Mediobanca Private Banking has performed this role impressively since it was set up in 2017, standing out “because it is able to offer a Private Investment Bank model”, says Angelò Viganò, Head of Mediobanca Private Banking. “For us this means being able to guarantee a link between private capital and company, an approach which today characterizes our ideal model for Ultra High Net Worth clients, helped by the synergies generated with the Corporate & Investment Banking services provided by Mediobanca’s mid-corporate team. This approach allows the Bank to help its clients manage their financial requirements while capitalizing on the Group’s experience in advisory and capital markets business”.

A healthy vision involves raising capital from Italian entrepreneurial families and putting it to use to help relaunch the economy.

Viganò adds: “For around five years we have been an active player on the alternative market, offering investment solutions to our UHNW clients: from opportunities in Italy, through club deals and direct investments, to global initiatives, in private markets and private equity, through illiquid funds which guarantee international portfolio diversification”.

So do you see club deals as a solution for relaunching the Italian economy?

“Direct investment through club deals has always been at the centre of our services to UHNWI clients, in co-operation with the Mediobanca Corporate & Investment Banking division. We aim to be the link between large private wealth and the capital required to accelerate growth, and we believe this method of investing could become even more strategic in this market phase. Club deals are one of our strengths. With The Equity Club, launched in 2016 and 2017, we invested together with around fifty of the leading entrepreneurial families in Italy, raising a commitment of some €500m. As well as investing in unlisted companies through TEC, Mediobanca Private Banking has also recently promoted two club deals in the real estate segment to acquire prestigious properties in central Milan. These are exclusive investment solutions, in which the Bank’s Private/UHNW clients have access to prestigious trophy assets in Italian and international real estate, leveraging on synergies with the Mediobanca Group’s Corporate and Investment Banking team’s advisory services. Investing in revenue-generating real estate, in the current low interest-rate scenario, is an attractive diversification opportunity, particularly in Milan which is one of the most appealing locations in Europe.

In terms of indirect investments, what opportunities do you offer your clients?

“In the past two years we have launched a programme for investing in private markets named Mediobanca Private Market Fund, which, through three different funds, has raised over $400m for investments in private equity, private debt and real estate. Private funds are a sophisticated asset class, not suited to all types of investors. It is an investment that rewards illiquidity, and which especially at a time when traditional asset classes are under considerable pressure, is able to guarantee superior profitability. We are firmly convinced that reserving part of a portfolio – preferably no more than 30% – for investing in private markets, which are less sensitive to short-term fluctuations, can be profitable for our UHNW clients. We want to become the leading Italian player in investments in private markets and we believe that Mediobanca Private Banking has all the experience and ability required to add value for our clients, including in this segment”.

This article is sponsored by Mediobanca